Hicks Muse Cancels Deal
To Acquire Pearson Unit

LONDON -- Hicks, Muse, Tate & Furst backed out of an $860 million deal to buy Pearson PLC's business-publishing unit, saddling Pearson with unexpected debt during a sensitive financial restructuring.

The assets are part of Pearson's $4.6 billion acquisition of Simon & Schuster's educational-publishing business from Viacom Inc., which was approved by the U.S. Justice Department Monday. As part of the purchase, Pearson planned...